The broader cryptocurrency market showed signs of recovery early Sunday, with Dogecoin (DOGE) leading early gains and posting a 2% increase over 24 hours to trade at $0.096. This positive price movement caught short sellers off guard, triggering significant liquidations and hinting at a potential shift in market momentum.
According to data from CoinGlass, short liquidations accounted for $470,140 or 4,897,291 DOGE in the last 24 hours, with short positions dominating the liquidation activity. This suggests bearish bets were poorly timed as buying pressure returned to the market.
The price action continues a recovery from the March 8 low of $0.086. Dogecoin registered three consecutive days of gains starting March 12, briefly touching $0.101 on March 13 before pulling back into a tight trading range between $0.094 and $0.097. The broader context remains one of sideways trading, with DOGE oscillating between $0.0799 and $0.117 since February without breaking either boundary.
Technical analysis indicates the 50-day moving average near $0.10 represents the first meaningful hurdle for bulls. A daily close above that level could open a path toward $0.12. Should DOGE reach $0.12, two outcomes become likely: if price holds above that level, the next target sits at $0.16, representing a substantial breakout from the current range. If the rally stalls, the coin may consolidate between $0.09 and $0.12 for an extended period.
Downside risks remain in play, with a break below the $0.09 support level potentially shifting focus back to the range floor at $0.0799.
A potential fundamental driver is taking shape with social media platform X preparing to roll out a payments feature expected to go live next month. The development has drawn attention from the crypto community given Dogecoin's historical association with the platform and its owner, Elon Musk. However, the connection remains speculative, as no official announcement has confirmed crypto integration into X's payments framework.
